Asia Distillates-Gasoil cash premiums gain for fourth straight session

NEW DELHI: Asia’s cash premiums for 10 ppm gasoil inched higher on Tuesday, rising for a fourth straight day, buoyed by tightening inventory levels in global markets amid increasing industrial demand.

Cash premiums for gasoil with 10 ppm sulphur content climbed to $1.24 a barrel to Singapore quotes, compared with $1.23 per barrel in the last session.

“Across the key diesel storage hubs - the ARA region, Fujairah and Singapore - diesel inventories are challenging their historical lows as refinery supplies struggle to keep pace with demand,” Serena Huang, analyst at the consultancy Vortexa, said in a note.

On supply side, China’s diesel exports in December sank to their lowest monthly level since March 2015, government data showed.

Benchmark oil prices climbed to their highest level since 2014 on Tuesday over tight supply outlook.